What is the Brand Fund defined as for Corporate Cleaning Group?
Corporate_Cleaning_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
13.3 Brand Fund.
13.3.1 Franchisor has established a national Brand Fund (the "Brand Fund") on behalf of the System for national advertising, marketing, and brand development (the "Brand Fund"). Franchisee is required to contribute to the Brand Fund One and a Half Percent (1.5%) of the weekly Gross Revenue generated by the Franchised Business ("Brand Fund Contribution"). Franchisor reserves the right to increase the amount of the Brand Fund Contribution to no more than two percent (2%) of Gross Revenue generated by the Franchised Business upon sixty (60) days written notice to Franchisee. Payments will be made in the same manner and time as the Royalty Fees. If Franchisee fails to timely report Gross Revenue, then, in addition a late fee and interest pursuant to Section 6.2 and 6.3 hereof, Franchisor shall collect one hundred twenty percent (120%) of the last Brand Fund Contribution payable. Franchisor shall reconcile amounts when Gross Revenue are reported.
13.3.2. Franchisor shall direct all advertising and marketing programs and shall have sole discretion to approve or disapprove the creative concepts, materials and media used in such programs and the placement and allocation thereof. Franchisee agrees and acknowledges that the Brand Fund is intended for the use and development of proprietary technology and to maximize general public recognition and acceptance
of the Marks and enhance the collective success of all Franchised Businesses operating under the System.
13.3.3.
Franchisor has no obligation to contribute to the Brand Fund on the same basis as Franchisee with respect to Corporate Cleaning Group outlets operated by Franchisor or Franchisor's affiliates.
- 13.3.4.
Franchisor may use the Brand Fund to satisfy any and all costs of developing, preparing, producing, directing, administering, conducting, maintaining and disseminating advertising, marketing, promotional and public relations materials, programs, campaigns, sales and marketing seminars and training programs of every kind and nature, through media now existing or hereafter developed (including, without limitation, the cost of television, radio, magazine, social media, newspaper and electronic advertising campaigns; direct mail and outdoor billboard advertising; public relations activities; conducting marketing research, employing advertising agencies to assist therein; developing, enhancing and maintaining the Website; and personnel and other departmental costs for advertising that Franchisor internally administers or prepares).
- 13.3.5.
The Brand Fund will be operated solely as a conduit for collecting and expending the advertising and technology contributions for the System.
The Brand Fund will not be used to defray any of Franchisor's general operating expenses, except for reasonable administrative costs and overhead that Franchisor may incur in activities related to the administration and direction of the Brand Fund and such costs and expenses pursuant Section 13.3.4.
Franchisor further reserves the right to include "Franchises Available" or similar language and contact information in advertising produced with Brand Fund contributions.
The Brand Fund and its earnings shall not otherwise inure to Franchisor's benefit.
- 13.3.6.
Franchisor will prepare an unaudited annual statement of the Brand Fund's operations and will make it available to Franchisee upon request.
In administering the Brand Fund, Franchisor undertakes no obligation to make expenditures for Franchisee that are equivalent or proportionate to Franchisee's contribution or to ensure that any particular franchisee benefits directly or pro rata from the production or placement of advertising.
- 13.3.7.
Although the Brand Fund is intended to be of perpetual duration, Franchisor may terminate it at any time and for any reason or no reason.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2025 FDD)
According to Corporate Cleaning Group's 2025 Franchise Disclosure Document, the Brand Fund is a national fund established for national advertising, marketing, and brand development on behalf of the Corporate Cleaning Group system. Franchisees are required to contribute 1.5% of their weekly gross revenue to the Brand Fund, referred to as the "Brand Fund Contribution." Corporate Cleaning Group retains the right to increase this contribution to a maximum of 2% of gross revenue, provided they give the franchisee 60 days' written notice. Payments to the Brand Fund are made in the same manner and at the same time as royalty fees. If a franchisee fails to report gross revenue on time, Corporate Cleaning Group can collect 120% of the last Brand Fund Contribution payable, in addition to late fees and interest. The franchisor will reconcile amounts when gross revenues are reported.
Corporate Cleaning Group has the sole discretion to direct all advertising and marketing programs, including approving creative concepts, materials, and media. The Brand Fund is intended to maximize public recognition and acceptance of the Corporate Cleaning Group marks and enhance the collective success of all franchised businesses within the system. The Brand Fund operates as a conduit for collecting and expending advertising and technology contributions and will not be used to cover Corporate Cleaning Group's general operating expenses, except for reasonable administrative costs related to the fund's administration.
Franchisees should note that Corporate Cleaning Group is not obligated to contribute to the Brand Fund on the same basis as franchisees for outlets operated by Corporate Cleaning Group or its affiliates. While the Brand Fund is intended to be perpetual, Corporate Cleaning Group can terminate it at any time, for any reason, provided all monies have been spent on advertising or promotional purposes or returned to contributors. Corporate Cleaning Group will provide an unaudited annual statement of the Brand Fund's operations to franchisees upon request, but there is no obligation to ensure that expenditures are equivalent or proportionate to a franchisee's contribution or that any franchisee benefits directly or pro rata from advertising efforts.